The Advantages of Owning Your Own Homeby Emily Kerr
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Everything seems confusing, costly, and daunting when you're contemplating signing the papers for a new home loan. But the costs of owning your own home are more than balanced by the advantages.
New Home Loan HeadachesOnce you find the home you want to buy, you plunge into the world of mortgage papers. Paperwork, appraisals, title searches, closing costs, and especially the down payment are significant. It takes time and money to sort out a new home loan.
Homes and TaxesBut consider a couple facts. As a renter your monthly payment gains you nothing but the roof over your head. It's not building equity that you can use later on in large purchases, and it's not going to make the rental your own. When you own a home, the U.S. Department of Housing and Urban Development points out that you can use the cost of the interest on your home loan and your property taxes as a write-off on your tax returns.
Longer Term InvestmentAnd don't forget that your home itself is an investment. The longer you're in it, the more of it you own as you pay off the mortgage. This is your equity, the difference between the fair market value of your home and the remainder you owe on your mortgage. Many lenders will lend up to 75 percent of your equity in a home equity loan or home equity line of credit, so you can actually utilize the money your house is making for you without selling.
Owning your own home may be expensive, but at the same time, it's money in the bank.
Sources:Your Path to Homeownership
Questions from First Time Homebuyers
About the AuthorEmily Kerr is a freelance writer with over 425 articles published. She writes about everything from new home construction to new home loans and everything in between.
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